Sterling drifted lower across the board yesterday after Rightmove Plc said that house prices in England and Wales fell in July for the first time in 2014. After starting the day close to a 22-month high against the euro, a drop in housing inflation had only a slight impact on sterling’s strong position. With UK inflation rising to 1.9% in June, investors are still holding onto their belief in sterling in advance of more significant data releases later in the week.
Today sees no major releases from the UK, and attention turns instead to the US. The release of both US inflation figures and existing home sales throughout June may cause movement in the markets today, possibly affecting sterling as well.